SMEs need more financing but don’t know how to access it

The results of a newly released six-monthly survey from RFI and the SME Banking Council, commissioned by Prospa, show that the current macro-economic environment - characterised by inflation and high interest rates - is driving SMEs to seek professional advice about their finances.

About a quarter of the 500 businesses surveyed in May said they had sought, or would seek, professional advice about their business finances.

SMEs that had sought funding were not always successful, of the 37% of businesses that applied for a loan, only 18% received the full amount they asked for (compared to 30% in November last year). Others received only a portion of what they applied for (14%) (down from 18% in the last survey).

Yet despite all this, most SMEs surveyed actually expect to need more financing in the next 12 months, not less, citing purchasing equipment (41%), maintaining cashflow (41%) and business expansion (32%) as the key reasons for seeking funding.